Artivion (AORT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 10% year-over-year to $98 million, driven by strong performance in On-X (up 15%), stent grafts (up 13–14%), BioGlue (up 12%), and tissue processing/preservation services (up 7%).

• Adjusted EBITDA increased 35% to $18.6 million, with improved operational leverage and margin expansion.

• Net loss narrowed to $2.1 million, or ($0.05) per share, while non-GAAP net income rose to $2.9 million, or $0.07 per share.

• Latin America and Asia Pacific revenues grew 25% and 15% year-over-year, respectively, reflecting successful international expansion.

• Amended credit facility and Endospan agreements reduced upfront acquisition cost, eliminated minimum earnout, and provided up to $25 million in new loans.

Financial highlights

• Q2 2024 revenues were $98 million, up from $89.3 million in Q2 2023.

• Adjusted EBITDA reached $18.6 million, a 35% increase year-over-year.

• Gross margin was 64.6–65%, slightly down from 65.1% in Q2 2023 due to product/geographic mix.

• Free cash flow for Q2 2024 was $3.6 million.

• Net loss for Q2 2024 was $2.1 million, improved from $3.4 million loss in Q2 2023.

Outlook and guidance

• FY24 constant currency revenue growth guidance raised to 10–12%, with expected revenues of $388–$396 million.

• Adjusted EBITDA guidance increased to $69–$72 million, representing 28–34% growth over 2023.

• Free cash flow expected to remain positive for full year 2024; net leverage expected to decrease to ~3.5x by year-end.

• Gross margins expected to remain similar to 2023; R&D expense as a percentage of sales to stay flat.

• Negligible currency impact expected for FY24 revenues at current rates.